The Bank of Japan meets on Friday, with much riding on policymakers to deliver a hawkish message that could haul the yen away from a four-decade low JPY= against the U.S. dollar.
Neither a well-telegraphed rate hike last month, $73 billion worth of currency intervention nor hope of money returning home have done much to lift the yen, which recently weakened beyond 163 a dollar for the first time since 1986.
Sources told Reuters that some in the BOJ see scope to raise rates at a faster pace than the dominant market view of twice a year if price pressure from a weak yen and rising energy costs persist.
Ahead of Friday's policy decision, Tokyo's July inflation figures are also due, though market participants don't expect the data to alter the BOJ outcome.
The Bank of England has, unlike the European Central Bank or Bank of Japan, so far resisted the urge from some policymakers to hike rates in the face of oil-driven price pressure. It's widely expected to do so again on Thursday.
Markets anticipate at least one rate increase this year as the rate of inflation picks up again, but signs of jobs market weakness indicate the BoE could adopt a more dovish tone.
Rate-setters meet just days after Prime Minister Andy Burnham entered Downing Street promising to reshape Britain. In the post-policy-meeting briefing, BoE chief Andrew Bailey is likely to be pressed on his thoughts on what Burnham's agenda means for monetary policy. Economists estimate an early decision to cut tax on electricity would slow inflation by 0.1 percentage points.
New finance minister John Healey will also be scrutinised as watchful bond markets assess whether he will be friend or foe.
It's Europe's busiest week of this earnings season with 40% of STOXX 600 .STOXX market cap reporting, according to Barclays.
The line-up includes AstraZeneca AZN.L, LVMH LVMH.PA, Shell SHEL.L, Airbus AIR.PA and UBS UBSG.S.
Second-quarter profit in Europe is set to increase by 17.3% when combining the results of companies that have already reported with estimates for those pending.
That would mark the fastest growth rate since the fourth quarter of 2022. But that's driven mostly by energy given surging oil prices. Exclude them and LSEG I/B/E/S expects a more modest 7.2%.
Flash euro zone inflation and growth readings meanwhile could go some way to deciding whether the ECB will raise interest rates again this year, after it left policy unchanged last week following June's hike.
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